--- canonical_url: "https://csls.ca/ipm-archive/issue-8/assessing-aggregate-labour-productivity-trends-in-canada-and-the-united-states-total-economy-versus-business-sector-perspectives/" title: "Assessing Aggregate Labour Productivity Trends in Canada and the United States: Total Economy versus Business Sector Perspectives" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T05:43:11+00:00" date_modified: "2026-07-13T06:41:31+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2004" ipm_keyword: - "aggregate productivity" - "business sector" - "Canada" - "labour productivity" - "non-business sector" - "output per hour" - "productivity measurement" - "total economy" - "United States" ipm_research_theme: - "Measurement and methodology" ipm_country_focus: - "Canada" - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Assessing Aggregate Labour Productivity Trends in Canada and the United States: Total Economy versus Business Sector Perspectives Canonical URL: https://csls.ca/ipm-archive/issue-8/assessing-aggregate-labour-productivity-trends-in-canada-and-the-united-states-total-economy-versus-business-sector-perspectives/ # Assessing Aggregate Labour Productivity Trends in Canada and the United States: Total Economy versus Business Sector Perspectives [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-8-5-Smith.pdf) Cite this article × Cite this article as: Smith, Jeremy. 2004. “Assessing Aggregate Labour Productivity Trends in Canada and the United States: Total Economy versus Business Sector Perspectives.” International Productivity Monitor, No. 8 (Spring 2004): 47–58. https://www.csls.ca/ipm-archive/issue-8/assessing-aggregate-labour-productivity-trends-in-canada-and-the-united-states-total-economy-versus-business-sector-perspectives/ ## Author: - Jeremy Smith Centre for the Study of Living Standards (CSLS) ## IPM Issue 8 Spring 2004 pp. 47–58 ## Related IPM articles [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [The Challenges of Productivity Measurement — Review Article on The Measure of Economies: Measuring Productivity in an Age of Technological Change Chad Syverson Spring 2025 | IPM Issue 48 | pp. 139–143](https://csls.ca/ipm-archive/ipm-issue-48/the-challenges-of-productivity-measurement-review-article-on-the-measure-of-economies-measuring-productivity-in-an-age-of-technological-change/) [De-industrialization and the Great Productivity Slowdown: What Comes Next? Paul Fisher Spring 2025 | IPM Issue 48 | pp. 115–138](https://csls.ca/ipm-archive/ipm-issue-48/de-industrialization-and-the-great-productivity-slowdown-what-comes-next/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [How Does Industrial Policy Impact Output, Hours and Productivity? The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) [Accounting for the Decline of Canada’s Real GDP Per Capita since Mid-2022 Philip Smith Spring 2024 | IPM Issue 46 | pp. 83–100](https://csls.ca/ipm-archive/ipm-issue-46/accounting-for-the-decline-of-canadas-real-gdp-per-capita-since-mid-2022/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This article examines the sensitivity of Canada-U.S. productivity growth comparisons to the choice between total economy and business sector measures. It finds that since 1981, the U.S.-Canada productivity growth gap is considerably larger when measured at the business sector level (0.76 percentage points per year) than at the total economy level (0.37 percentage points), primarily because measured non-business sector productivity growth is higher in Canada than in the United States. The article discusses the methodological strengths and weaknesses of each measure and concludes that the appropriate choice depends on the specific purpose of the comparison. Cet article examine la sensibilité des comparaisons de croissance de la productivité entre le Canada et les États-Unis au choix entre les mesures de l’économie totale et du secteur des entreprises. Il constate que depuis 1981, l’écart de croissance de la productivité États-Unis-Canada est considérablement plus grand lorsqu’il est mesuré au niveau du secteur des entreprises (0,76 point de pourcentage par année) qu’au niveau de l’économie totale (0,37 point de pourcentage), principalement parce que la croissance mesurée de la productivité du secteur non commercial est plus élevée au Canada qu’aux États-Unis. L’article examine les forces et les faiblesses méthodologiques de chaque mesure et conclut que le choix approprié dépend de l’objectif spécifique de la comparaison. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-8-5-Smith.pdf)